Ameren Corp Shares Surpass Analyst Target: What Now?

In recent trading, shares of Ameren Corp (Symbol: AEE) have crossed above the average analyst 12-month target price of $86.71, changing hands for $87.25 per share. When a stock meets an analyst’s target, they usually have two choices: downgrade their valuation or raise their target price. Analyst reactions can also depend on the company’s underlying business developments that may be fueling the stock’s rise. If the outlook is positive, perhaps a higher target price is warranted.

Within the Zacks coverage universe, there are 14 different analyst targets contributing to the average for Ameren Corp. However, it’s important to note that this average is just a numerical figure. Some analysts have set lower targets, such as one predicting a price of $75.00, while another believes the stock could reach as high as $97.00. The standard deviation among these targets is $6.955.

Looking at the average target price allows investors to leverage the collective insights of multiple analysts rather than the views of a single expert. With AEE now above the average target price of $86.71, investors are prompted to assess the company’s potential. They must decide whether $86.71 is just a stepping stone to an even higher target or if the stock’s valuation has escalated to a level where it might be time to consider taking profits.

The average rating displayed in the last row of the table ranges from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Strong Sell. Data for this article was sourced from Zacks Investment Research via Quandl.com. For the most recent Zacks research report on AEE, click here — FREE.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the official stance of Nasdaq, Inc.